Economics:
10th Edition
ISBN: 9781285859460
Author: BOYES, William
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
thumb_up100%
Chapter 22, Problem 14E
To determine
(a)
To compute:
The fixed cost.
To determine
(b)
To compute:
The variable cost.
To determine
(c)
To compute:
The marginal cost.
To determine
(d)
To compute:
The break evenpoint of student-hours.
Expert Solution & Answer
Trending nowThis is a popular solution!
Students have asked these similar questions
Your health club offers you “free” parking and unlimited use of its facilities seven days a week if you buy an annual membership for $3,650, to be paid at the time the membership is taken out. Otherwise, you buy daily passes for $10 per day for the use of the facilities, plus pay for your parking. Is your parking truly “free” if you buy the annual membership? Explain.
A newspaper report states that chocolate production is failing to keep up with worldwide consumption and could fall behind by 2 million metric tons annually by 2030.
Does this create an excess demand or excess supply situation? Explain how it will affect the price of chocolates in the future.
The news report further goes on and states that adverse weather and fungal disease are partly to blame. Explain how that affects the supply curve.
How will your answer in b. above change if innovation of disease resistant and higher yielding cocoa trees replace their traditional counterparts?
Read the 2018 article…
A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won& buy it because they done like the taste. From an economic perspective, the company should..........
keep the hamburger on the menu because they have spent so much money and time developing and promoting the product.
spend more money to develop a more efficient way to cook the hamburger so it cooks in a shorter time.
pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost.
keep trying to sell the hamburger so that people who developed and promote it have a job with the company.
You sell homemade candles online for $50 each and you hire your family members to make the candles. It takes a family member 1 hour to produce a candle and you pay them $15 per hour. Production of each candle requires $10 worth of materials. You also have to pay Etsy $500 each month for the right to sell as many candles as you would like on their website.
How many candles do you have to sell each month to break even? Enter your answer as a number below.
Knowledge Booster
Similar questions
- A fast-food company spends millions of dollars to develop and promote a new hamburger on its menu only to find that consumers won't buy it because they don& like the taste. From an economic perspective, the company should keep the hamburger on the menu because they spent so much money and time developing and promoting the product. spend more money to develop a more efficient way to cook the hamburger so it cooks in a shorter time. pull the hamburger off the menu and treat the development and promotion expenditures as a sunk cost. keep trying to sell the hamburger so that people who developed and promote it have a job with the company.arrow_forwardDescribe how and why people and businesses make decisions based on marginal costs and marginal benefits. Provide two examples, as an individual or for a business, to use for the comparison of benefits and costs.arrow_forwardAlec and Ellie are the only detectives in the town of Broadchurch. They work together. Assume efficient production. Each has 10 hours in a day to allocate between conducting interviews and completing paperwork. In two hours Alec can produce 5 interviews or 19 files of paperwork. In two hours, Ellie can produce 13 interviews or 22 files of paperwork. What is Ellie's Opportunity Cost of an interview in terms of files of paperwork? Enter a number only. Note: The question here is asking you for the opp. cost in terms of files so you can just enter a number. On the assessments if the question is phrased as "what is the opportunity cost?", you will have to enter the units as well, without which you will not get full credit.arrow_forward
- Explain why each of the following statements is True, False, or Uncertain according to economic principles. Use diagrams where appropriate. Unsupported answers will receive no marks. It is the explanation that is important. If a Prof leaves their $100,000 per year job to start a business that earns annual revenue $400,000, and has annual labour and rental costs of $200,000, the economic profit of the business is $200,000.arrow_forwardElliot and Jordy find themselves on a deserted island. The only two activities available are fishing and finding pineapples. In a full day, Elliot can catch 6 fish or find 12 pineapples or some linear combination of the two; in the same time, Jordy can catch 4 fish or find 10 pineapples or some linear combination of the two. What are each individual’s marginal costs of fishing and finding pineapples? (must provide the correct answer for full credit, no additional work is necessary) Who has an absolute advantage in fish production? Who has an absolute advantage in finding pineapples? Briefly explain your reasoning. Who has a comparative advantage in fish production? Who has a comparative advantage in finding pineapples? Briefly explain your reasoning.arrow_forwardLane and Riley are the only two residents in a neighborhood, and they share the same driveway. They would like to have the driveway paved. The value of the paved driveway is $1,500 to Lane and $900 to Riley. Regardless of who pays for the paving both people will benefit from it. If the cost of paving the driveway is $2,000 and Lane proposes that they each pay 50 percent of this cost, then Riley ______ agree to Lane’s proposal because ______. A. will; repaving the driveway would increase total economic surplus B. will not; repaving the driveway would lower total economic surplus C. will; if they split the cost, then Riley’s economic surplus would increase D. will not; if they split the cost, then Riley’s economic surplus would decreasearrow_forward
- a- The Western U.S. saw record heat waves in August, 2021. Electricity is heavily used in air conditioning leading to very high demand for electricity then. Would you expect the marginal costs of generating electricity to be similar to in May, 2021, lower orhigher? Why? b- Suppose California could add 1000 MWh of wind generation—which produces for four hours during the nighttime when temperatures are relatively low—or 1000 MWh of solar generation—which produces for four hours in the daytime when temperatures are relatively high. Which one would you have expected to lower total costs of electricity generation more in the summer? Why? Please explain by sketching the daytime and nighttime marginal cost curve for electricity and showing the size of the cost reductions.arrow_forwardA furniture firm has the capability to producer chairs and tables. Management wants to evaluate whether producing both products or only one is better. Production and financial analysis show the following: Separate Production Approach Avg Cost of a table when ONLY tables are produced = 28 Avg Cost of a chair when ONLY chairs are produced = 18 Joint Production Approach Avg Cost of a table when BOTH tables and chairs are produced = 30 Avg Cost of a chair when BOTH tables and chairs are produced = 19 In economic terms, we would say the firm faces ______________. diseconomies of scope economies of scope economies of scale diseconomies of scalearrow_forwardWhat do economists mean by ceteris paribus? Why is ceteris paribus hard to engineer in practice? Discuss common hurdlesarrow_forward
- Two alternative programs to save 50 more lives per year entail providing more cardiac intensive care facilities and redesigning dangerous highway interchanges. The price of a new cardiac intensive care unit is $500,000, and the price of redesigning and renovating a highway interchange is $1 million. One combination of the two programs that can save 500 lives is five cardiac units and three highway exit renovations. a.) Is the mix involving five cardiac units and three highway exit renovations cost-effective? b.) Assuming that the marginal products of both programs decline, what needs to be done to achieve the cost-effective mix of programs?arrow_forwardAlec and Ellie are the only detectives in the town of Broadchurch. They work together. Assume efficient production. Each has 10 hours in a day to allocate between conducting interviews and completing paperwork. In one hour Alec can produce 23 interviews or 45 files of paperwork. In one hour, Ellie can produce 15 interviews or 9 files of paperwork. Broadchurch right now conducts 237 interviews a day. If it needed 10 more interviews, how many paperwork files would it have to give up? Enter a number only.arrow_forwardTim runs a shoe shine stand at the airport. Tim has no skills, no job experience, and no alternative job. The return to entrepreneurship in the show shine business is $10,000 a year. Tim pays the airport rent of $2,000 a year, and his total revenue from shining shoes is $15,000 a year. He spent $1,000 on a chair, polish, and brushes and paid for these items using a loan that has an interest rate of 20 percent a year. At the end of one year, Tim was offered $500 for his business and all its equipment. Calculate Tim'd annual explicit costs, implicit costs, and economic profit from his shoe shine business. a. Explicit costs. b. Implicit costs. c. Economic profit. Note:- Please refrain from offering handwritten solutions. Please ensure that your response maintains accuracy and quality to avoid receiving a downvote. Take care of plagiarism. Answer completely. You will get up vote for sure.arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Managerial Economics: A Problem Solving ApproachEconomicsISBN:9781337106665Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike ShorPublisher:Cengage Learning
Managerial Economics: A Problem Solving Approach
Economics
ISBN:9781337106665
Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor
Publisher:Cengage Learning